R. STAN BAKER, District Judge.
This matter is before the Court on Plaintiff's "Application for Entry of Charging Order Against the Limited Liability Company Interests of Judgment Debtor Dennis A. Waters, as an individual, and Injunction" (the "Application"), (doc. 23). In March 2013, Plaintiff First Southwestern Financial Services, LLC's predecessor in interest initiated this civil action against Defendants Dennis Waters Construction, LLC ("Waters Construction"), and Dennis A. Waters after Defendants defaulted on a promissory note that had been executed by Waters Construction and personally guaranteed by Waters. (Doc. 1.) After being served by the United States Marshal, both Defendants failed to answer or otherwise defend. Thus, the Clerk of Court entered default as to both Defendants, (doc. 13). Thereafter, the Court granted Plaintiff's Motion for Default Judgment and awarded Plaintiff the principal balance of the promissory note as well as past and future interest, attorney's fees, and service costs. (Doc. 16.)
According to Plaintiff's Application, in the almost six years since the judgment was entered against Defendants, it has not collected any funds against the amount of the judgment. (Doc. 23, p. 1.) According to the Application, Defendant Waters recently filed documentation with the United States Bankruptcy Court for the Southern District of Georgia in which he disclosed membership interests in nine Georgia limited liability companies (the "LLCs").
"Under O.C.G.A. § 14-11-504, a judgment creditor of a member of a limited liability company has a statutory right to collect a judgment debt from the member's distributional interests in a limited liability company by obtaining a charging order and diverting payments to the creditor which would otherwise have been made to the member."
O.C.G.A. § 14-11-504(a).
Since filing the Application, Plaintiff has filed a certificate of service along with return receipts reflecting that copies of the Application were sent via certified mail to Defendant Waters at two different addresses and to Defendant Waters Construction. (Doc. 25; doc. 25-1; doc. 25-2.) The certificate of service also reflects that two of the mail parcels were signed for and received (by an individual named Jennifer Gross) on March 11, 2019. (Doc. 25-1; doc. 25-2.) Georgia's charging order statute, O.C.G.A. § 14-11-504, is silent as to whether service of process or any kind of notice must be provided to the judgment debtor or the at-issue LLC(s) upon the filing of such application.
The issue of what kind of notice (if any) must be provided to the judgment debtor, however, is less clear. The Court is unaware of any case law addressing the extent to which service or notice of an O.C.G.A. § 14-11-504 application must be given to the judgment debtor. Even assuming, however, that service on the judgment debtor by certified mail would be acceptable for an application under these circumstances, given Plaintiff's additional request for injunctive relief against Defendant Waters, the Court finds that service pursuant to Fed. R. Civ. P. 4.1 and a show cause hearing are both necessary.
Consequently, the Court
Please type or print legibly, insuring readability of all copies. DO NOT DETACH ANY COPIES. Submit one complete set of this form (USM-285) and one copy of each writ for each individual, company, corporation, etc., to be served or property to be seized or condemned. The applicable fees for such service(s) (T28, USC Sec. 1921 establishes the fees for service of process by the U.S. Marshal) may be required prior to said service.
For service of any process upon an officer or agent of the United States Government, submit a copy of the writ and a set of Form USM-285 for each officer or agent upon whom service is desired. Submit three (3) additional copies of the writs for service upon the Government of the United States. The U.S. Marshal will serve one (1) upon the U.S. Attorney and will forward two (2) to the Attorney General of the United States. (When the applicable box is checked, completion of the final signature block by the U.S. Marshal or his Deputy always certifies service on the U.S. Attorney and the Attorney General, regardless of whether other defendants on the writ were served.) Failure to provide any of the copies will delay service of the writ.
Complete all entries above the double line. Mark all applicable check boxes and use the "Special Instructions" to advise of any information that will assist the U.S. Marshal in expediting service.
It more than one writ and USM-285 is submitted on a single case, the U.S. Marshal will receipt for all of them on the first USM-285. You will receive for your records the last (No. 5) "Acknowledgment of Receipt" copy for all the USM-285 forms you submit. When the writ is served, you will receive the No. 3 Notice of Service copy. This copy will be identical to the return to the Clerk of the Court.
Upon completion of all services (if the Marshals fees were not requested or tendered in advance or if additional fees are indicated), you will receive a "Billing Statement" (copy 4 of USM-285) from the United States Marshal. (NOTE: Copy 4 should be returned, by you, to the U.S. Marshal, together with your payment of the amount owed.
Additional supplies of the USM-285 may be obtained from the Clerk of the U.S. District Court or U.S. Marshal, without cost.